Bonds hold the morning's gains with no added momentum — 10-year Treasury at 4.64%, mortgage rates flat at 6.80%.

Through midday Monday, the bond market has done little beyond preserve what it opened with. The 10-year Treasury yield sits at 4.645%, down from 4.66% this morning — a 1.5 basis-point drift, not a move. UMBS 5.0 prices are holding at 97.00, unchanged since the open. The 30-year mortgage rate has ticked to 6.80%, one basis point below this morning's reading.

No new data hit the wire today, and none will. That's the story: the market is sitting on its hands ahead of Wednesday's Fed statement. The morning rally was real — bonds are up nearly a quarter-point from Friday's close — but there's no catalyst to extend it right now. Traders are positioned; they're waiting to see whether the Fed's language on Wednesday gives them a reason to push further. A quiet afternoon is the expected result.

— David Burson, NetRate Mortgage